Skip to main content

We'll help you
move forward.

Retirement Plan Early Distribution

What Would Remain After Taxes and Penalties?

The amount withdrawn layered on top of other taxable income may move you into a higher tax bracket.

If you take an early distribution from your tax-deferred account, how much will you have remaining after paying income taxes and penalties?

The tax-deferred account may be a 401(k) plan, your individual retirement account (IRA), profit sharing plan, or other tax-deferred savings account.

Generally, if you withdraw funds from a tax-deferred retirement account and have not reached age 59 1/2, your withdrawal will be subject to a 10% penalty on the amount withdrawn. In addition to paying income taxes at the federal level, you may have to pay state taxes. There may also be a state penalty on an early withdrawal. State taxes are not considered in this example.

Skip Table Information
Your Results
Description Amount
Your federal income tax rate after making the withdrawal: 0
The amount you plan to withdraw from your tax-deferred account: 0
The estimated taxes due on the amount withdrawn: 0
The 10% penalty on the amount withdrawn: 0
The estimated total taxes and penalties: 0
The amount remaining after taxes and penalties: 0

Whenever possible, it's generally best to avoid paying early withdrawal penalties on retirement assets. How much of your retirement nest egg would be lost to taxes and penalties if you took an early withdrawal? Note that this example assumes that the account is funded with pre-tax or tax-deductible contributions, and that withdrawn amounts are taxable.

Total taxes and penalties are estimated to be 0.00. After taxes and penalties, the amount remaining will be 0.00.

There are certain exceptions to the penalty imposed on an early withdrawal. However, income taxes must still be paid. Consult your tax advisor before taking any action.

Distribution Potentially Lost to Penalties and Taxes

Investment and Insurance Products are:

  • Not Insured by the FDIC or Any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

This information is intended for use only by residents of (AZ, CA, CO, DC, DE, FL, HI, ID, IL, KY, MA, MD, MT, NH, NJ, NV, NY, OR, TN, TX, UT, VA, WA, WI). Securities-related services may not be provided to individuals residing in any state not listed above.

For parties residing outside of the U.S., this information is: (i) provided for informational purposes only, (ii) not and should not be construed in any manner as an offer to participate in any investment or to buy or sell any securities or related financial instruments, and (iii) not and should not be construed in any manner as a public offering of any financial services, securities or related financial instruments. Products and services listed may not be available, or may have restrictions, depending on client country of residence.

Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.

Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.

A note about Social Media: Opinions, comments and actions taken on Social Media are those of the third party and do not necessarily reflect the views of the creator of this profile or of the firm. Social Media is intended for U.S. residents only and subject to the following terms: wellsfargoadvisors.com/social.


© 2022 Wells Fargo Clearing Services, LLC. All rights reserved.

FINRA’s BrokerCheck Obtain more information about our firm and its financial professionals

FINRA’s BrokerCheck Obtain more information about our firm and its financial professionalsX